The dollar encountered renewed selling...>

DOLLAR-YEN: The dollar encountered renewed selling pressure in Europe to briefly

make a show under Y111.00, rate touched extended pullback lows of Y110.98 before

meeting the reported demand interest placed through to Y110.80. Recovery efforts

seen shallow as main focus turns to US CPI at 1330GMT for clearer direction. The

CPI is expected to rise 0.1% in December following a 0.4% rise in November.

Analysts expect energy prices to slip after October's 3.9% rebound due to

gasoline prices. AAA reported a pull-back in mid-month prices from November to

December. Food prices are expected to post a modest increase. The core CPI is

forecast to rise 0.2% following a softer-than-expected 0.1% increase in October.

* There are a number of larger option expiries today: Y111.00($1.12bn),

$111.65-70($550mn), Y111.75($1.38bn), Y112.00($689mn), Y112.20-25($592mn),

Y112.50($381mn), Y112.60($450mn), Y112.70-80($1.15bn), Y112.90-95($605mn),

Y113.00($954mn), Y113.15-20($1.06bn), Y113.30($680mn), Y113.45-50($993mn),

Y114.00($861mn), Y115.00($1.04bn), Y116.00($1.09bn).